Trading is often considered as the most elite class profession in the United Kingdom. Everyone wants to become a successful trader in Forex market but only a few can fulfill their dream. The moment you step into the investment world is the very moment you start challenging yourself. Some retail traders often start their trading career without knowing the dynamic nature of Forex market and as a result, they lose their investment. The pro traders often say that saving your investment is more important than making a profit in the Forex market. If you can protect your trading capital from the wild swing of the market, you can easily secure your financial freedom. But in order to lead your life based on currency trading, you need to know some of the important factors of this market. If you can follow these factors, chances are very high you will become a successful trader in the Forex market.
Trade with low-risk exposure
Do you know why most of the retail traders are losing money? They are losing due to their big lot size trade. The starting part of a novice trader’s career is very smooth but things become worse when they start taking excessive risk to secure big profit. They simply think that by trading more they will be able to make a huge amount of money in the long run. But in order to secure your whole month profit, a single quality trade execution is enough for you. Instead of looking for random trade setups in the lower time frame, you need to do the market analysis in the higher time frame. It’s true that lower time frame trading is extremely exciting but you need to consider the high-risk exposures. Even the most senior traders in the UK often ignore the lower time frame trading signal to save their investment.
Trade the major pairs
Most of the high-class brokers like ETX Capital are now offering many different kinds of tradable assets to the retail traders. This is where most novice traders make mistake. Instead of trading the most traded currency pairs, they are looking for potential trade setup in the synthetic pairs. In the eyes of the trained professional synthetic, pair trading is often considered as the riskiest approach in the trading profession. Most of the time these pair exhibits false spike which wipes out the good trades of the retail traders. However, if you still want to trade the synthetic pairs make sure that you are using a wide stop loss. Most importantly, you need to learn price action trading strategy to master the art of cross pair trading. But being a new investor, focus on the Forex majors, as it will help you to quality trade setups in favor of the long-term market trend.
Impact of high impact news
The Forex market becomes extremely volatile in nature during the event of the high impact news release. Most of the novice traders want to catch the large market movement and thus they place big lot size trade prior the news data release. Most of the time they lose a significant portion of their trading capital. On the contrary, the expert UK traders always stay on the sideline and wait for a precise price action confirmation signal once the news is being released in the global market. But if you trade the synthetic pairs in the Forex market, fundamental analysis will not help you much. For this reason, most of the successful traders in the UK prefer to trade the most traded currency pairs in the Forex market. As a new trader, you should only trade the Forex majors since it will reduce your risk exposure to a great extent. Always remember that your main concern is to protect your investment. If you can remember this simple statement you can easily make huge amount profit.